FeedbackThis morning the U.S. Department of Labor released their “Employment Situation” report for the month of May 2005. This report measures the number of unemployed as a percentage of the labor force and is a primary monthly indicator of economic activity.
This morning’s employment report showed that only 78,000 new jobs were created in May, despite forecasts that called for 175,000 new jobs. The report shows potential deceleration of job growth and economic weakness. Bond market bulls are cheering because they are translating this data into lower inflationary expectations.
As a result of this report, the 10 year Treasury yield has dropped to 3.83%, a level not seen since 2004: it’s again approaching 40 year lows. In turn, mortgage rates continue this year’s unanticipated drop presenting consumers with tremendous options whether they’re thinking about a buying a home or refinancing to a lower rate.
Related posts:
- Employment Report Could Send Long-Term Rates Lower
- Low Rates, Employment Fuel Housing Demand
- Drop In Mortgage Rates Likely Temporary
Tags: Bond Market, Home Buying, Interest Rates, Mortgage Rate, Refinance, Treasury Bonds
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